Bank of Korea Holds Rate at Record Low, Trims GDP Forecast
ByThe Bank of Korea held its key interest rate at a record low, opting to monitor the impact of recent cuts in borrowing costs and the government’s fiscal stimulus program.
The decision to keep the seven-day repurchase rate at 1.5 percent was forecast by all 18 analysts surveyed by Bloomberg. It follows four rate cuts since August, including one last month as a “preemptive move” against the economic fallout from the Middle East Respiratory Syndrome.
Governor Lee Ju Yeol trimmed the bank’s forecast for growth this year to 2.8 percent and maintained his projection for inflation of 0.9 percent. Previous rate cuts and the government’s extra budget will support the economy, Lee said, while warning that the bank has a close eye on swelling household debt…
Bank of Korea Holds Rate at Record Low, Trims GDP Forecast
